Land Rover offer protection from the VAT increase

The new VAT rate of 20% is due to come into force from January 2011; one of the sectors that will be heavily affected by this change is the automotive industry. Many manufacturers along with their franchised dealerships are offering incentives to help customers avoid paying the higher rate of duty.

Land Rover are offering customers the chance to avoid paying the extra VAT on new build retail orders placed before December 31st 2010. Land Rover customers will avoid the increased VAT rate if their vehicle is registered and delivered between 4 January 2011 and 31 March 2011. Land Rover has decided that the 2.5% VAT difference will be jointly funded by Land Rover and participating dealerships.

Land Rover UK, MD said, "Protecting against the VAT increase means that customers can order with confidence, secure in the knowledge that the January tax hike will not affect their vehicle purchase, this move demonstrates that the interests of our customers continue to be at the heart of our business strategy."

It is rumoured that Land Rover can afford to do such deals because UK sales are up 30% year to date and there has been increased demand across the entire range. In particular the Land Rover Freelander 2, built at Halewood on Merseyside, which continues to be the best-selling model, with sales up 40% year to date.

The new Land Rover Defender in Salisbury is eligible for this offer; if you are planning on buying a new Land Rover in the New Year it may be wise to place the order before the end of the year to save yourself at least 2.5%.